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Can I spend money from work after the meeting of creditors in Chapter 7 Bankruptcy on what I want or am I restricted?

Lebanon, IN |

After you have filed for bankruptcy, can you use your earned money for vacation or furniture before your case is discharged?

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Attorney answers 5


Unless your trustee or your attorney says otherwise, your wages are yours to save or spend as you see fit. Different for income tax refunds, possibly, review with your attorney if you want specifics.

I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.


Typically we can spend your pay check, just like everyone else, on whatever you want after you file for bankruptcy. You can buy furniture and go on vacation after you file, so no worries.


The short answer is yes without knowing any other facts. The Trustee looks at all assets that were part of the bankruptcy estate at the time of filing. If these were accounts receivable or commissions earned prior to the filing but paid after, they would have to be properly exempt by your BK attorney. If theses are wages, they are not part of the bankruptcy estate and you are free to do as you please.

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I agree with other counsel that you are not restricted on how you spend your income after you file your case. However, based on the two questions you've asked, I wonder if a Chapter 7 is appropriate for you. You have a large tax refund coming in and seem to have sufficient post filing income to pay for furniture and vacations. Maybe a Chapter 13 would be more appropriate?

Consult with local bankruptcy counsel PRIOR to filing anything and PRIOR to spending any of the tax refund money. Based on your questions, trying to file on your own, and taking action based solely on on-line legal advice could lead to big trouble for you after you file your case.


I would assume after you filed your Chapter 7 bankruptcy that you would continue to need to pay your ongoing living expenses you listed on Schedule J. We don't want to see you living on the street or in a shelter. Didn't pre-bankruptcy credit counseling explain anything to you? Better take your Financial Management Class & get the certificate filed before making any big plans for the few dollars you have left over each month! Hope this perspective helps!